Allowing the appeal of the assessee the Court held that Capital subsidy in terms of shareholders’ agreement from foreign company for investment in share capital of joint venture company is capital receipt not liable to tax as revenue receipt. (AY. 2002-03) (TCA. No 159 of 2009 dt. 6-03-2019)
Sundaram Finance Ltd. v. ACIT (2019) 413 ITR 298 (Mad)(HC)
S. 4 : Charge of income-tax –Capital or revenue – Capital subsidy In terms of shareholders’ agreement from foreign company for investment in share capital of joint venture company — Capital receipt not liable to tax as revenue receipt. [S. 28(i)]